E.ON to withdraw Killingholme gas-fired power station’s 900MW of capacity from UK market but tenders for SBR contract which would see the station continue to be available to National Grid if successful

By ScottSomerville

E.ON has today (THURS) announced it is to release Killingholme’s 900MW of Transmission Entry Capacity (TEC) to National Grid meaning that the power station will no longer be available to generate in the UK energy market. It has also been made clear that the power station is at serious risk of permanent closure, subject to the outcome of an ongoing tender for National Grid’s Supplemental Balancing Reserve (SBR) service.

Commenting on the announcement E.ON UK Chief Executive, Tony Cocker, said:

“First and foremost we are focused on supporting our colleagues who are potentially affected by this change and will work closely with them in the coming weeks and months to ensure the best possible options are available on an individual level.

“The reality, however, is that the market conditions for gas-fired power stations are extremely difficult and without support from the SBR contract, permanent closure is a real and present risk to Killingholme. Over the last few years we have invested billions in the UK’s energy infrastructure but there is no doubt that the challenging operational environment continues to provide uncertainty and risk that must be addressed.

Killingholme, which was entered into the recent UK Capacity Market Auction but was unsuccessful, is a Combined Cycle Gas Turbine (CCGT) comprising two 450MW modules giving a total generation capacity of 900MW. Approximately 50 people in total are employed at the North Lincolnshire site.

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Scott Somerville (07889 771 804)

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Source:: E.ON to withdraw Killingholme gas-fired power station’s 900MW of capacity from UK market but tenders for SBR contract which would see the station continue to be available to National Grid if successful